HomeMy WebLinkAbout2019-025-02/19/2019-APPROVING THE PURCHASE OF VIDEO CONTENT LICENSING AND SERVICES FROM THE NATIONAL CABLE TELEVISION CO CRESOLUTION 2019-025
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING THE PURCHASE OF VIDEO CONTENT LICENSING AND SERVICES
FROM THE NATIONAL CABLE TELEVISION COOPERATIVE FOR FORT COLLINS
CONNEXION AS AN EXCEPTION TO THE COMPETITIVE PURCHASING PROCESS
WHEREAS, the City recently completed a competitive purchasing process under Request
for Proposals 99120 for broadband video hosting services via scaled proposals; and
WHEREAS, the City is currently finalizing contract negotiations with the selected third-
party video hosting and streaming service provider(Video Host)to enable the broadband division
I
f the City's Electric Utility, Fort Collins Connexion ("Connexion"), to deliver video streaming
service; and
WHEREAS, in order for the Video Host to deliver video content for distribution by
Connexion, the City must secure license rights to video content through a content aggregation
service provider; and
WHEREAS, the National Cable Television Cooperative (NCTC) is a non-profit; video
content aggregator service organization that negotiates preferential master licensing agreements
with video content producers, including traditional cable channel operators, on behalf of its
subscribing members; and
WHEREAS, NCTC has secured license rights to an extensive library of video content on
more cost-effective, efficient, and better terms than would be otherwise available from those
content producers to individual NCTC members; and
WHE REAS, based on review and evaluation of available video content aggregation
services, the Purchasing Agent has determined NCTC is able to secure access to substantially all
the video content Connexion will require within the next five years on terms not otherwise
available to the City; and
WHEREAS,there are certain video content families,including local channels(e.g., Denver
affiliates and.public broadcasting channels) not available through NCTC, which will also require
Connexion to enter independent negotiations to secure content rights; and
WHEREAS, membership in NCTC requires the City to pay a$1,500 application fee and a
one-time membership fee of approximately$35,600,based on estimates of the potential subscriber
premises to be passed during the Connexion network buildout; and
WHEREAS, final license fee totals payable by the City to opt-in to NCTC video content
packages areunavailable until the City becomes a member of NCTC, and license fees may vary
based on the terns of master licenses between NCTC and video content producers;and
WHEREAS,based on prior content license fee data provided by NCTC and the experience
of other NCTC members, current estimated monthly license fees are in the range of $60 per
subscriber for national video content; and
-1-
WHEREAS, NCTC members have reported approximately 25% lower monthly expenses
for content licensing through NCTC, compared to license fees charged by other content
aggregation services or through independent negotiations with content producers; and
WHEREAS, sufficient funds to apply for NCTC membership and pay annual content
license fees have been budgeted by Connexion; and
WHEREAS, Section 8-161(d)(1)b. of the Code of the City of Fort Collins authorizes the
Purchasing Agent to negotiate the purchase of supplies and service without utilizing a competitive
process where the Purchasing Agent determines that although a particular material or service is
available from more than one responsible source,a competitive process cannot reasonably be used,
or, if used, will result in a substantially higher cost to the City, will otherwise injure the City's
financial interests or will substantially impede the city's administrative functions or the delivery of
services to the public; and
WHEREAS, the Purchasing Agent has reviewed of the NCTC membership and service
options consistent with the requirements of Section 8-161(d)(1)b. of the Code and City practices
for exceptions to the competitive process; and
WHEREAS, the Purchasing Agent has determined that due to the numerous advantages
offered by NCTC;the existing service compatibility of NCTC's services with the network operated
by the Video Host selected under Request for Proposals #8720, and the limited availability of
wholesale video content rights for Connexion, a competitive process cannot reasonably be used
and,if used,would result in a substantially higher cost to the City and may result in the impairment
of the City's delivery of services to the public,requisite justifications for which determinations the
Purchasing Agent has submitted to the City Manager for approval; and
WHEREAS, the City Manager has reviewed and approved the justification for the
acquisition of video content aggregation services through NCTC; and
WHEREAS, Section 8-161(d)(3) of the Code requires approval of this purchasing method
by the City Council for expenditures costing more than Two Hundred Thousand Dollars
($200,000) prior to procurement.
NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the Purchasing Agent is authorized to purchase membership in and
video content licensing services through the National Cable Television Cooperative (NCTC) for
up to five years as an exception to the competitive purchasing process requirements in the
following amounts:
- up to$35,600 for membership; and
- up to$70/month in licensing fees per subscriber for national video content.
-2-
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th
day of February,A.D. 2019.
ayor
ATTEST:
+OF FORro,
City Cle " SEAL N
6%
COLORA�O
-3-